Belgium: Proposed reform of investment deduction regime
Introduction of three categories of investments qualifying for a tax deduction
April 03, 2024
The government recently approved a draft law reforming the investment deduction regime that would introduce three categories of investments qualifying for a tax deduction (on top of the standard amortization for tax purposes) effective 1 January 2025:
- General category with a basic 10% deduction for small and medium enterprises (SMEs) and qualifying individuals (with an increased 20% rate for investments in qualifying digital assets), which would replace the current 8% ordinary investment deduction available to such taxpayers
- Category of “thematic” deductions at 40% for SMEs and individuals and 30% for other companies for environment-friendly investments, including specifically investments in efficient energy use and renewable energy as well as carbon emission free transportation, and digital investments supporting such investments
- Technology deduction of 13.5% (and a 20.5% “spread” deduction) for patents and environment-friendly investments in research and development (R&D), which would replace the current deduction of 15.5% (and a 22.5% spread deduction) for patents and environment-friendly R&D investments for assessment year 2025
Parliament is expected to approve in the coming weeks.
Read an April 2024 report prepared by the KPMG member firm in Belgium